The enhancements to our Funds Availability Policy will take place on October 8, 2024. These changes are designed to improve the customer experience, protect against fraud, and ensure alignment with the latest industry standards.
Our Funds Availability Policy governs the availability of deposits you make to your checking and savings accounts at Five Star Bank, including important details like how much you are able to access initially after making a deposit and when the full amount is available to you.
Key Changes:
- More Available Initially: The amount available when depositing a check in-branch, at the ATM and through Digital Banking is increasing from $225 to $500 for all account types.
- Timing for In-Branch Commercial Deposits: As a protection against check fraud for both you and the Bank, we have adjusted the schedule for commercial check deposit availability at the branch, which may result in longer hold times. Please see the subsequent chart for full detail.
- Timing for In-Branch Municipal and IOLA Deposits: As shown in the following chart, in-branch check deposits to municipal accounts and Interest On Lawyer Accounts (“IOLAs”) will receive same-day full availability. For law firms with both IOLA and commercial accounts, please note that availability follows the schedule for the respective account type.
- Longer Delays May Apply: At times, Five Star Bank will delay the availability of funds to protect both you and the Bank from fraud and overdrafts. This is called an “exception hold,” and it can be utilized in certain circumstances, including when:
- Amount deposited totals more than $6,725 on a business day
- There is a concern about the check being paid
- You redeposit a check that has been returned unpaid
- You’ve experienced repeated overdrafts on your account or combination of accounts
- There is an emergency, such as communications or equipment failures
New Schedule
Below please find a high-level summary of the standard availability schedule for check deposits across multiple deposit channels:
| Check Deposit Type* | Day of Deposit | Next Business Day (by 9 am) | Second Business Day (by 9 am) | Third Business Day (by 9 am) |
|---|---|---|---|---|
| Branch – Consumer Deposit Accounts | First $500 immediately | — | Up to $6,225 additional | All remaining funds |
| Branch – Commercial Deposit Accounts | First $500 immediately | Up to $6,225 additional | All remaining funds | — |
| Branch – Municipal and IOLA Deposit Accounts |
Full availability |
— | — | — |
| Mobile Check Deposit (when deposited by 5 pm on a business day**) | — | First $500 | — | All remaining funds |
| ATM (when deposited by noon on a business day**) | — | First $500 | Up to $6,225 additional | All remaining funds |
| Commercial Remote Deposit Capture and Lockbox | — | Full availability | — | — |
Consistent with our current practice, longer holds may apply for new customers during the first 30 calendar days their account is open and, as noted above, exception holds may apply in certain instances.
We encourage you to read the full policy for additional detail. Additionally, here is a helpful overview of our overdraft practices.
| Frequently Asked Questions |
|---|
The letter you received simply outlines key changes in our policy that take effect on October 8th. It’s important to us that you understand what’s changing and why, but there is no action you need to take. For business owners, you may want to consider how potential holds may impact your daily cash needs relative to accounting and payroll.
We continuously review our policies and practices relative to industry trends, and the enhancements to our Funds Availability Policy are designed to improve the customer experience, protect against fraud, and ensure alignment with the latest industry standards. This policy is also proactive in addressing requirements that go into effect for many financial institutions next year, to ensure less disruption for our customers in the future.
The amount initially available for check deposits in our branches, at ATMs and via Digital Banking is more than doubling to $500.
The availability schedule we shared in our recent letter relates to in-branch check deposits. If your employer offers direct deposit, you can consider enrolling in that in order to have access to your funds earlier.
We understand the importance of funds availability, and we’ve analyzed competitors and industry best practices in making these changes. By holding large check deposits, we can better protect both you and the bank against fraud.
We reserve the right to place an extended hold – called an Exception Hold – that lasts longer than our standard availability schedule. This can be done for specific reasons, such as if repeated overdrafts have taken place or if a previously returned unpaid check is redeposited. Our full policy outlines these instances, and if such a hold is placed, the reason will always be shared with you in a notice that explains why as well as when to expect your deposit.
We understand how important funds availability is to our customers. As you read through the Funds Availability Policy, if you have questions about how these changes will impact your deposit accounts, we are ready to assist! Please reach out in the manner most convenient for you:
- Contact your relationship manager
- Stop into your local branch
- Call our Customer Contact Center at 877.226.5578
